New Enhancements for Qantas Frequent Flyer and Plans for Major Loyalty Allliance with Optus

Sydney, 17 May 2011

Qantas announced today that Qantas Frequent Flyer will undergo a major round of program enhancements to offer even more value to its 7.8 million members.

Qantas Chief Executive Officer Alan Joyce said, "We recognise we operate in a very competitive environment which is why we are determined to ensure our Frequent Flyer program is the most dynamic, flexible, user-friendly and rewarding program in the business. We asked our members what they value and they said a huge choice of partners to earn and use points with and the ability to earn more points. Today, we are announcing plans to deliver on both those desires and we will continue to do just that going forward".

Qantas also announced plans to create a new consumer loyalty alliance with Australian telco giant Optus, which will see Optus join the program later this year. The new deal will allow members the opportunity to earn points across Optus consumer and small business products and services. Mr Joyce said that once finalised the new alliance with Optus will be a significant boost for the Qantas Frequent Flyer program and highlights its commitment to remaining a market leader by expanding its portfolio of quality partners.

"We are delighted with the prospect of welcoming Optus to our stable of partners and are excited about the opportunities this presents to our loyal customers who value choice, flexibility and of course, the ability to earn points doing every day things like using their phone," he added.

Optus Chief Executive Paul O'Sullivan said that Optus was very pleased about the planned loyalty alliance with Qantas Frequent Flyer which will allow Optus customers to earn points on their telco services. "Once in place, Optus will be the only telecommunications provider to reward consumer and small and medium business customers with the ability to earn Qantas Points for its products and services. As part of the planned alliance, Qantas will also be adding a number of Optus products and services as redemption options using Qantas points," Mr O'Sullivan added.

The Qantas Frequent Flyer program is also set to roll out a range of exciting changes for members over coming months. Mr Joyce continued, "We recognise the importance of evolving our offering to ensure we remain at the forefront of loyalty reward programs and maintain our position as Australia's premier Frequent Flyer program. Rest assured, we are steadfastly committed to driving better value for our customers and keeping the program innovative, relevant and genuinely rewarding."

From today, Qantas Frequent Flyer will begin introducing a host of fresh benefits which include:

More options to earn points on an expanded range of Jetstar flights

Expanding the program to enable members more choice on Jetstar flights, including more options to select to earn points and Status credits on all Jetstar fares.

Jetstar is today introducing a new fare structure which will see Frequent Flyer members able to earn both points and Status credits in Economy and Business on any fare purchase with a "Plus or Max Bundle". The new "Bundles" can be included on top of any fare and will provide customers with flexibility and extras depending on their needs. Among the added benefits are making free changes to their flight, seat selection or earning Qantas points and Status credits.

Adjusting earn rates to deliver increased value and make it easier to accumulate points

The Qantas Frequent Flyer program will today increase the Cabin bonus to further reward customers travelling in premium cabins on Qantas* flights: * Premium Economy Cabin bonus will increase from 10% to 25%* Business Cabin bonus will increase from 25% to 50%* First Cabin bonus will increase from 50% to 100%

To make it even easier to earn points, Qantas Frequent Flyer is also today increasing Gold and Silver Status bonus points to give members even more status when they fly with Qantas*. The Gold Status bonus will increase from 50% to 75% and the Silver Status bonus will increase from 25% to 50%.

Improving the upgrade experience using points via a number of initiatives including offering SMS confirmation of upgrade requests

Currently members can make a request for an upgrade using points but potentially don't have it confirmed until they present at the airport for check-in on the day of travel. From fourth quarter 2011, customers will be able to receive an SMS notification of confirmation prior to their travel.

"Platinum One" - Creating a new level of VIP recognition for Qantas' most frequent flyers

From fourth quarter 2011, those Platinum members who earn more than triple the usual Status credits retain level for Platinum tier status will have access to even more benefits and exclusive services, including a dedicated team to look after your travel needs every step of the way.

Frequent Flyers will shortly receive further details about all the planned changes and other exciting new initiatives on the boil including Qantas epiQure, a new member only online community for food and wine appreciators.

* With a QF code on their ticket.

About Qantas Frequent Flyer:

* The Qantas Frequent Flyer program was launched in 1987 and today has 7.8 million members* The program has more than 400 partners, including airlines, hotels, financial institutions and retailers* Over 3.4 million Award flights were redeemed by members last year* The online Qantas Frequent Flyer Store offers more than 2,500 products